Yay, more infrastructure spending during a recession. That’s the right thing to do – stimulate the economy and spend while the price of construction is lower.
But why, oh why, cancel spending on rail and housing insulation and put the money into roads, instead?
The only reason I can think of is that National/ACT doesn’t like KiwiRail and insulation because they were the Left’s iniatives. There is certainly no pragmatic reason to drop them. From both an environmental and economic stand-point investing in rail and warmer homes are the best options. The payoff from insulation alone is $4 for every dollar invested. We need more roads in the age of peak oil like we need a hole in the head.
Unfortunately, we’re still not seeing much of this much-vaunted Key pragmatism (in fact, we’re not seeing much of Key at all). In its place, we’re seeing typical tory thinking as we go from clean and green to grey and grubby.